We have a price estimate of
$48.87
for JPMorgan's stock, roughly 5% above the current market
price.

Despite prevailing market headwinds, JPMorgan and other banks
are getting a lift from the recovery in the corporate sector. The
tech sector in particular has seen surging activity. Last month,
Facebook raised $1.5 billion from Goldman Sachs and its clients and
LinkedIn is looking to raise about $175 million in an initial
public offering. JPMorgan recently raised $1.22 billion from a new
fund focused on emerging tech and social media. JPMorgan initially
expected to raise between $500 million and $750 million but the
fund outperformed due to strong performance of the tech sector.

IPOs on the Rise

As a result of increasing corporate activity, the IPO market in
the U.S. is seeing a sharp pickup. In the first two months of 2011,
there have been 24 IPOs in the U.S., an increase of 85% over the
previous year according to a report by Renaissance
Capital. The IPOs raised a total of $8.1 billion this year
compared to $1.9 billion last year. The Renaissance report notes
that the technology and communications sectors have been most
promising and have received a strong reception across a broad range
of companies including Demand Media, NeoPhotonics, Epocrates, Velti
and InterXion.

Equity Underwriting Volume

JPMorgan's investment banking performance should pick up as key
rates rise, spending resumes, and investor confidence recovers. The
firm's investment banking division should benefit from a rise
in global equity underwriting volumes, bolstered by strength in the
technology and communications sectors. After a stagnant equity
underwriting market in 2010, we estimate that global equity
underwriting volumes will grow 7% annually to reach almost $1371
billion by 2017, from current levels of about $854 billion.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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